Aboitiz Group more than doubles CAPEX to P153B
In Photo: (Top left photo) The inaugural solar power project by AboitizPower, the 59 MWp San Carlos Sun Power Inc. (pictured above) in San Carlos City, Negros Occidental, has paved the way for an array of upcoming solar ventures.
Aboitiz Power (AP)
AboitizPower is getting the biggest share at P73 billion, or 48% of the Aboitiz Group’s total capital expenditure, mainly for its pipeline of RE projects. This is a major jump from the previous year’s CAPEX and represents the company’s and the Group’s mission of developing cleaner and more sustainable energy sources for the country.
The company has over 1,000 megawatts (MW) of disclosed RE projects in construction and development en route to hitting a target of 4,600 MW within the next decade. This includes the 159 MW peak (MWp) Laoag Solar Power Project in Aguilar, Pangasinan; the 17 MW Binary Geothermal Power Project in Tiwi, Albay; the 173 MWp Solar Power Project in Calatrava, Negros Occidental; the 45 MWp Solar Plant in Armenia, Tarlac; and the 212 MWp Solar Power Project in Olongapo, Zambales.
AP also plans to break ground on a number of renewable energy projects this year, including the 89 MWp Solar Project in San Manuel, Pangasinan, and a 50 MW wind plant in Camarines Sur, done in partnership with another energy firm.
AP intends to maintain the availability and efficiency of its power plants, as well as deliver fresh capacities, to help ensure energy security amidst the increase in power demand.
Aboitiz Equity Ventures (AEV)
The holding company is allotted 29%, or P44 billion, of the Group’s CAPEX, of which P40 billion is earmarked for the acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI), the bottling arm of Coca-Cola in the country. The joint acquisition, valued at US$1.8 billion, gives AEV a 40% stake in CCBPI and access to its over 17 brands of alcoholic and non-alcoholic beverages.
Aboitiz InfraCapital (AIC)
AIC exhibited significant growth across its infrastructure ecosystem of diverse yet interconnected sectors, covering Economic Estates, Water, Airports, and Digital Infrastructure. For 2024, AIC and its partners have allotted an aggregate P25 billion CAPEX to strengthen and optimize existing assets, while sustaining its growth by exploring new projects and synergies within the Group.
Its Economic Estates continue to lead in smart and sustainable industrial-anchored developments, attracting local and foreign locators with its full suite of integrated services catered to advancing industries. The upcoming groundbreaking of its fourth development, TARI Estate in Tarlac, represents a strategic expansion into Central Luzon, bringing its total estate footprint to 1,600 hectares. As AIC develops its latest estate, strengthening its ecosystem proposition, it continuously enhances its offerings beyond the conventional industrial park model to be a living blueprint for innovation. This is evidenced in the launch of two major initiatives: the Pods at LIMA, a 600-bed dormitory for locator employees, and RED, an electric intra-estate transportation system leveraging smart technology and data science for operational efficiency.
The Water operations of AIC reached a significant milestone with Apo Agua Infrastructura (Apo Agua) commencing commercial operations as part of the Davao City Bulk Water Supply Project (DCBWSP). This year will see the ramping up of production to meet the water and growth needs of over one million Davaoeños, while AIC Water simultaneously explores opportunities to expand its portfolio following the successful launch of subsidiary operations.
(Top right photo) Mactan-Cebu International Airport (MCIA), operated by Aboitiz InfraCapital GMCAC, welcomed 10 million passengers in 2023, representing an 81% increase from the previous year.
Following a year marked by a significant rebound in passenger traffic, AIC is set to further improve its operations and enhance the customer service experience at MCIA. Optimizing this strategic asset positions AIC as a significant player in the Transport and Mobility sector as it continues negotiating regional airport bids, including Laguindingan Airport and Bohol-Panglao International Airport, to build a robust domestic transfer and travel infrastructure ecosystem.
For digital infrastructure, AIC has increased its telco tower portfolio in 2023 to 1,048 sites through Unity Digital. This year, Unity Digital will prioritize driving co-location across towers to enhance digital connectivity nationwide.
Another P1 billion is allotted for major maintenance works and the purchase of critical spares of the Group’s cement business under Republic Cement.
(Below left photo) UnionBank clinches historic ‘Best Retail Bank’ Title in PH for the 5th Consecutive Year.
Union Bank of the Philippines (UBP)
Union Bank of the Philippines remains one of the most highly-rated banks in the country in terms of digital accessibility and services. It remains a digital trailblazer and aspires to be a Great Retail Bank to best serve the growing needs of Filipinos everywhere. It is among Asia’s most recognized and highly awarded companies and ranks among the country’s top universal banks.
Over the years, UnionBank has garnered a record-breaking number of awards and recognition including the most recent “Marketing Company of the Year” at the 42nd Agora Awards; 6-Time “Digital Bank of the Year (2018-2023)” from The Asset Triple A; and an unparalleled 5-time “Best Retail Bank in the Philippines” (2020-2024) from The Asian Banker.
By the end of March 2024, Union Bank is set to complete the integration of Citibank’s consumer banking business in the country that it acquired in 2022. The landmark deal included an asset and liability transfer, the sale of shares in Citicorp Financial Services and Insurance Brokerage Philippines, Inc., and real estate shares in the Citibank Square building in Quezon City. Investments in technology refresh, cybersecurity, and system integration comprise the majority of UnionBank’s capex.
(Below 2nd from left photo) Pilmico’s Long An feed mill in Vietnam is slated for completion in 2Q2024.
Pilmico and Gold Coin Group (Pilmico)
Pilmico and Gold Coin Group (Pilmico) continues to be one of the leading feed millers in the Asia Pacific region and has been allotted almost P4 billion CAPEX in 2024, mostly for its agribusiness expansion projects.
It is currently constructing its Yunnan Mill in China, slated for completion by 2Q2024, which has the capacity to produce up to 150 thousand metric tons of livestock annually. This will facilitate the company’s entry into new segments of the feed market in the region. Meanwhile, its Long-An feed mill in Vietnam is nearing completion within 2Q2024 with a capacity of 200 thousand metric tons and the potential to expand to 300 thousand metric tons. This feed mill will expand Pilmico’s livestock business in the Southern region of Vietnam. For its food and nutrition arm, Pilmico has completed the expansion of its The Good Meat stores across the Philippines, with a supermarket presence of over 250 in 2023. For 2024, it plans to improve its meats business further by repopulating its breeder farms, developing channels to bring up plant utilization of its meat-cutting facility, Tarlac MeatMasters, and reinforcing its meats organization, among others.
(Below extreme right photo) Seafront Residences is a 43-hectare seaside community designed by the world-renowned DPZ Co-Design, featuring diamond parks and greenbelts, creating a network of walkable spaces and natural green open areas with various amenities.
Aboitiz Land
Aboitiz Land exceeded key financial and operational metrics in 2023 despite a challenging market environment, achieving higher revenues and profits than the previous year. Domestic and international sales have increased, and construction times reduced by implementing precast technology. Collections have improved 16% from the previous year, and Customer Satisfaction score has been maintained at 81% for the whole year. They also fortified OneVecino, their digital ecosystem of sales and customer service apps, by launching a new digitized property management service with Vecino Properties.
This year, It has been allotted P3.3B capital expenditure to support its ongoing projects. Aboitiz Land plans to launch the second building of The Strides at LIMA, following the tremendous market reception of the first building. They will also focus on their strategy of harvesting their existing landbank and promoting group synergy by maximizing the value of various real estate holdings across different Aboitiz Business Units, including the economic estates. (Aboitiz Group File Photo)
The Aboitiz Group has entered 2024 with major acquisitions and expansions in tow from the previous year, and forging ahead to its Great Transformation. The Group has doubled down on renewable energy (RE) investments as it declared a P153 billion CAPEX, more than twice in 2023, with a majority allotted to its RE projects in the pipeline. Further investments are being made to develop its retail banking business, support utility infrastructure projects, and expand its food group, among others.
With significant milestones headlining the year such as managing the largest operating private bulk water supply facility in the country and entering the consumer beverages market in a landmark joint acquisition, the Group is well-positioned to achieve its growth prospects and contribute towards nation-building. The Group’s initiatives lay the groundwork for its transformation into the Philippines’ first Techglomerate, a company that leverages agility and adaptability in embracing new investments and technologies.
“Our substantial increase in capital expenditures is a clear reflection of our commitment to renewable energy. We believe that investing in sustainable energy sources is not just good for the environment, but also makes good business sense. As a techglomerate, we intend to redefine the meaning of industry and community in the digital age,” said Aboitiz Group President and CEO Sabin M. Aboitiz. (PR)
